Jeff Bezos lands a $ 80 million "deal" on the New York City condos
The purchase, which includes a penthouse and two apartments below it, is located in a newly built 1912 neo-Gothic building overlooking Madison Square Park.
The other two apartments were bought together by Bezos in May for $ 28.45 million, and it would not be surprising if they were combined with the penthouse to provide an even bigger and more characteristic property, says Jonathan Miller, president of Miller Samuel, a real estate valuation firm that was not involved in the sale.
"In Manhattan, the prize is in a larger cohesive space," he says. "One plus one equals two and a half. By combining the three, there is extra value creation."
But this is not the highest priced piece of real estate sold in Manhattan this year.
A first class time to buy
It is not known how much Bezos finally paid the penthouse, since the purchase has not yet been published. But based on the latest list price ̵[ads1]1; which was significantly lower than the original price – Bezos received a discount on the property and take advantage of a softer luxury market for new developments in New York, Miller says.
Penthouse was originally listed at $ 73.8 million in November 2017, according to Miller. A year later, it was reduced to $ 62.8 million. Four months later, in March 2019, it was reduced to $ 58 million. Two months later it was in contract.
"There is a 21% drop in the asking price," Miller says, "I'm not even billing because it could have gone for less."
This discount corresponds to the larger luxury market in New York.
"We see 15% to 35% off these properties," he says.
Although it is not clear whether Bezos will be able to receive drone deliveries on his expansive penthouse terrace, the building has full-time doorman and cold store – to handle all Amazon Fresh supplies.
